Home Bank Accounts Debit Card Comparison UK

Listed above are debit cards with bank accounts available under your search. Just click on the find more information button to get further details about the best debit cards to choose from.

How do debit cards work?

Since their launch in 1987 debit cards have established themselves as the most popular card payment with consumers. Initially, debit cards were developed as a convenient and cost-effective alternative to point-of-sale cheques. As time has passed though, debit cards have increasingly been used as a convenient substitute for cash.

Debit cards operate like cash or a personal cheque. When you use a debit card the money is immediately deducted directly from your current account. As long as you have enough money in your account, you can use your debit card to buy things in person, over the phone, by mail order and online. It really is a simple case of 'if you don't have it you can't spend it'. While a credit card is a way to 'pay later', a debit card is a way to 'pay now'. In addition, they can be used to get up to £50 cash back from merchants offering that service. Debit cards are linked directly to your bank account. You can use them to buy goods or withdraw cash and the amount is taken from your account right away.

You can also use a prepay debit card to get 'cash back' from certain shops where you buy goods and also ask them for money back from the cashier. Again, the total amount is deducted from your account immediately. When using cash machines or paying for goods with a debit card you'll need to enter your PIN (personal identity number). When using your debit card to buy goods you usually enter your pin number into an electronic hand held device, but in some cases you may have to sign. The chip & pin system which is in place across a vast number of outlets has only added to the convenience of using your debit card.

If a situation arises where you do not have the funds within your account to cover an outgoing debit or standing order, the outcome will depend on which type of card you use. If you have a ‘ Solo card' or ‘ Electron card' the balance in your account is checked before each transaction – if there's not enough money you won't be able pay or withdraw cash without prior agreement. If you have a ‘ Switch debit card', ‘ Visa debit card' or ‘ Delta debit card' your account balance won't necessarily be checked and the payment may still go through

If you go overdrawn the charges you'll pay will depend on whether or not you have an authorised overdraft arrangement with your bank. If you do, you'll pay the agreed amount of interest at the end of each month. This is usually much lower than interest charged on credit cards. This system makes debit cards popular with students and people who are used to dealing with an overdraft. If you don't have an overdraft agreement, or you exceed the agreed limit, your bank may allow the payment to go through but you'll usually pay much higher fees than if you had an agreed overdraft.

Using debit cards over the phone or internet

Debit cards can be used to make payments by phone or over the internet. In this case you'll need to provide certain details that are printed on your debit card. Please be aware that debit cards DO NOT offer purchase protection or payment protection. This is currently being reviewed and hopefully soon debit cards with purchase protection should be available.

Debit cards are used in nearly (45%) of all prepayment transactions. Online sales accounted for 61% of purchases that were never received when using debit cards. Free debit cards are available with some bank accounts and usually with basic bank accounts with no added frills or benefits. It is vitally important though to check out the terms and conditions before you buy debit cards.

Remember, using debit cards abroad will incur charges - Consider a travel money card instead in this scenario. When using debit cards abroad you WILL ALMOST CERTAINLY incur bank charges. These range from providers but on average work out around 2.75% when conducting an overseas transaction to approximately £1.50 when withdrawing cash from an ATM.

Choose an account based on your specific needs. Not all cash card accounts cover ALL services so choose the accounts that offer you the best service for each of your requirements. By opening a debit card bank account you can manage your money as and when you wish, offering a sense of financial freedom.